GRR - Grange Resources

[fanger]

Is this stock a dividend trap? A 12% yeild seems to good to be true.

 

[Erlang]

Checkout the dividend history. They typically or historically do 2-cent payments, but did one or two 10-cent payments in the last 18 months. But they have now, it seems, returned to giving 2 cents. So that 12 percent yield would be based on the last two payments of 10 and 2 cents. The next dividend payment? Who knows.

The iron miner Fenix Resources (FEX) has even higher dividend yields, paid once a year, but they only started making profits a couple years ago.

 

[Erlang]

Note the extra/surprise interim 10-cent dividend in December 2021. My guess would be the 10 cent dividends were not the norm.

Note: Technically GRR is an iron pellet producer, which involves digging up iron ore and heating it up.

Compare GRR's dividends to that of the paid once-yearly dividends of FEX (who only started paying dividends 15 or so months ago).

This not a recommendation. I just thought of FEX as a small iron ore miner for a comparison, though they just produce iron ore, not pellets. (Image Resources (IMA) has a comparable dividend too, but they mine mineral sands, and only started paying the last couple of years).

Note: FEX diluted their shares in the last few months to raise some capital (to buy a trucking company), which probably *partly* explains their drop in price last year.

 

[divs4ever]

MARKET UPDATE

The Board of Grange Resources Limited (“Grange” or “the Company”) has announced that the Company’s CEO, Mr Honglin Zhao, will delay his retirement.

Mr Zhao will continue to serve the Company in his current position to ensure the goals of the next phase of important projects (including North Pit Underground and Southdown) are achieved.

-ENDS

i hold GRR ( free-carried' )

probably not a bad thing will give them extra time to find a suitable successor

 

[divs4ever]

CEO APPOINTMENT

The Board of Grange Resources Limited (“Grange” or “the Company”) is pleased to advise of the appointment of Mr Weidong Wang as Chief Executive Officer.

Mr Wang has over 30 years’ experience in management, engineering and projects in the steel industry. Mr Wang has held multiple high-level positions within Jiangsu Shagang Group, including Deputy General Manager at Northeast Special Steel Group Co. Ltd, assistant to the Chairman and Director of Technical Improvement Department at Jiangsu Shagang Group.

Mr Wang has extensive experience in project management and delivery, including a 5,800m3 blast furnace (BF), one of the world largest BF and new ironmaking solution, FINEX ironmaking projects.

Mr Wang holds a degree in Industrial Electrical Automation from the Shazhou Institute of Technology.

Mr Wang’s commencement date will be subject to the applicable approvals and working visa being granted. Upon commencement, Mr Honglin Zhao will retire from his position of CEO of the Company and retire from the Board of Directors. T


he key terms of Mr Wang’s contract are provided in Annexure A below.

This announcement was authorised by the Board.

i hold GRR ( free-carried' )

Substantial Shareholders List As of 30 Jan 2024​

NAME	SHARE HOLDING	SHARES HELD (%)
Shagang International Holdings Ltd and associates	554,762,656	47.90%

so of course the new CEO came from China

but has been a great stock for me over the last 12 years

 

[divs4ever]

my August 2024 comp. tip

( i hold free-carried ' ) and currently have top up order in the market ( so going down would not be that unfortunate for me )

has crazy metrics , is sitting on a pile of cash , and looking for partners to develop the new mine

• Cash and liquid investments of A$289.55 million and trade payable of A$5.37* million compared with cash and liquid investments of A$271.96 million and trade receivable of A$30.37* million for the March quarter

.• Early works program for Underground project progresses with detailed engineering design work and over 800 metres developed in the exploration decline.
• Concentrate production increased for the quarter with 675kt produced compared to 586kt for the March quarter with favourable milling performance.
• Pellet sales decreased for the quarter to 483kt compared with 565kt for the March quarter due to adverse weather delaying 2 shipments at the end of June to early July.
• Increase in average received prices for the quarter to US$134.69/t (A$206.11/t)* (FOBPort Latta) compared with US$108.11/t (A$166.03/t) for the March quarter.• Unit cash operating cost decreased for the quarter to A$145.05/t compared withA$161.70/t for the March quarter due to higher concentrate production.

Outlay of approximately A$22.7 million has been made in the quarter on capital projects including continuation of the Underground Exploration Decline, replacement of two 777ROM Trucks and upgrades to Savage River town-site accommodation.

since they have been looking for partners in the new mine for years , there is a very real chance they will go it alone at initially reduced production

 

[sptrawler]

Grange Resources, I've looked at them over the years, but never found a really good reason to buy, they were going to pump ore down to Albany from the Porongurups from memory and their mine in NW Tassie is laterite from memory.
It's good to see they are still going, gives me a bit of hope for IGO and Lithium at Greenbushes, the Chinese have a major stake in that.

 

[divs4ever]

Grange Resources, I've looked at them over the years, but never found a really good reason to buy, they were going to pump ore down to Albany from the Porongurups from memory and their mine in NW Tassie is laterite from memory.
It's good to see they are still going, gives me a bit of hope for IGO and Lithium at Greenbushes, the Chinese have a major stake in that.

View attachment 181715

yes an interesting relationship where the major iron customer is also the major shareholder , although the former Chairman ( of both ) has passed away .

some would call that a bad thing ( reliant on one single customer) , but since the shareholder base is stable ( around 10,400 shareholders for what it seems is years , maybe the shareholders are relatively content and patient

 

[sptrawler]

yes an interesting relationship where the major iron customer is also the major shareholder , although the former Chairman ( of both ) has passed away .

But the underlying interest is alive and well.

As long as the foreign ownership board keep an eye on Australia's interest, rather than allowing the foreign companies to become Dyson vacuum cleaners, sweeping up stranded assets. Time will tell.
But it is all looking like rope a dope at the moment IMO.

 

[divs4ever]

But the underlying interest is alive and well.

As long as the foreign ownership board keep an eye on Australia's interest, rather than allowing the foreign companies to become Dyson vacuum cleaners, sweeping up stranded assets. Time will tell.
But it is all looking like rope a dope at the moment IMO.

attractive enough to throw some more cash into it after reducing last year ( to help fund the farm purchase )

not a lot of cash , mind but some , now the question is , will Chinese steel demand taper in the next 5 years or will it stay stable as other nations become unprofitable as their manufacturing ( as costs rise and rise )

 

[sptrawler]

attractive enough to throw some more cash into it after reducing last year ( to help fund the farm purchase )

not a lot of cash , mind but some , now the question is , will Chinese steel demand taper in the next 5 years or will it stay stable as other nations become unprofitable as their manufacturing ( as costs rise and rise )

Well they have weathered many material cycles so far, so there is no reason to think, they won't keep doing so.

I'm too late to the game, to pull on a guernsey.

 

[divs4ever]

the 10 year chart shows this went as high as $1.60 , but i consider that an anomaly , i think this will plod along with a few dips and rallies as long the way as it fails to attract many big holders ( apart from the major holder/customer )

 

[divs4ever]

bought these as low as 11.5 cents a share in 2014 , the global economy is waning and this could slip below 30 cents this year

maybe not depends on what you call an attractive entry point

( BTW i reduced at 70 cents April last year )